2024 -- S 2586 | |
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LC004469 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO MOTOR AND OTHER VEHICLES -- RENTAL VEHICLE SURCHARGE | |
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Introduced By: Senators Ruggerio, Lawson, Pearson, and Gallo | |
Date Introduced: March 01, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 31-34.1-2 and 31-34.1-4 of the General Laws in Chapter 31-34.1 |
2 | entitled "Rental Vehicle Surcharge" are hereby amended to read as follows: |
3 | 31-34.1-2. Rental vehicle surcharge. |
4 | (a) Each rental company shall collect, at the time a motor vehicle is rented in this state, on |
5 | each rental contract, a surcharge equal to eight percent (8.0%) of gross receipts per vehicle on all |
6 | rentals for each of the first thirty (30) consecutive days. The surcharge shall be computed prior to |
7 | the assessment of any applicable sales taxes, provided, however, the surcharge shall be subject to |
8 | the sales tax. |
9 | (b) The surcharge shall be included on the rental contract and collected in accordance with |
10 | the terms of the rental contract. Sixty Twenty percent (60%) (20%) of the surcharge shall be |
11 | retained by the rental company in accordance with this section and subsection (c), and forty eighty |
12 | percent (40%) (80%) of the surcharge shall be remitted to the state for deposit in the general fund, |
13 | on a quarterly basis in accordance with a schedule adopted by the tax administration. Each rental |
14 | company collecting and retaining surcharge amounts may reimburse itself in accordance with this |
15 | section from the funds retained for the total amount of motor vehicle licensing fees, title fees, |
16 | registration fees and transfer fees paid to the state of Rhode Island and excise taxes imposed upon |
17 | the rental companies’ motor vehicles during the prior calendar year; provided, that rental companies |
18 | shall not be authorized to reimburse themselves for title fees, motor vehicles licensing fees, transfer |
19 | fees, registration fees and excise taxes unless those fees and taxes shall have been assessed and paid |
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1 | in full to the state or appropriate city or town prior to any reimbursement. No reimbursement shall |
2 | be allowed upon the prepayment of any fees or excise taxes. |
3 | (c) At a date to be set by the state tax administrator, but not later than February 15th of any |
4 | calendar year, each rental company shall, in addition to filing a quarterly remittance form, file a |
5 | report with the state tax administrator on a form prescribed by him or her, stating the total amount |
6 | of motor vehicles licensing fees, transfer fees, title fees, and registration fees and excise taxes paid |
7 | by the rental company in the previous year. The amount, if any, by which the surcharge collections |
8 | exceed the amount of licensing fees, title fees, transfer fees, and registration fees and excise taxes |
9 | paid shall be remitted by the rental company to the state of Rhode Island for deposit in the Rhode |
10 | Island highway maintenance fund beginning in fiscal year 2015. |
11 | 31-34.1-4. False reports — Penalties. |
12 | Any person making a false report to the tax administrator with the intent to misrepresent |
13 | the amount of title fees, motor vehicle licensing fees, or transfer fees or excise fees paid or the |
14 | amount of surcharges collected or who knowingly fails to collect the surcharge as required by this |
15 | section shall be guilty of a misdemeanor and shall upon conviction of each offense be fined not |
16 | more than one thousand dollars ($1,000) or be imprisoned for not more than one year, or by both |
17 | fine and imprisonment. In addition to the above penalty, any person convicted of a violation of this |
18 | section shall forfeit their right to reimbursement for expenses and shall remit the entire six percent |
19 | (6%) eight percent (8%) surcharge collected to the state in a manner consistent with § 31-34.1-2. |
20 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO MOTOR AND OTHER VEHICLES -- RENTAL VEHICLE SURCHARGE | |
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1 | This act would increase the amount of the rental vehicle surcharge retained by the state |
2 | from forty percent (40%) to eighty percent (80%) and eliminates excise taxes imposed upon rental |
3 | car companies. It would also require violators making false reports to forfeit their right to |
4 | reimbursement for expenses and remit eight percent (8%) surcharge collected to the state. |
5 | This act would take effect upon passage. |
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